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Target Discounts
Hey folks. Context: I'm working on introducing better pricing guidance for our B2B SaaS product that's sold using a sales led motion. Today we just have list prices and we want to introduce target prices. We've never published our list prices nor put them on customers' agreements so we have some flexibility with changing these to fit our needs. We do want to move to showing customers the list price, discount, and net pricing on agreements. This will help us more effectively expire discounts that are intended to be short term (e.g. 1st year). Question: When you're thinking how to set list vs. target price (target discounts), what have you seen work well? Hypothesis: My initial thought is to set the target price 10% - 20% below the list price. Here's my rationale: 1. If sales starts the negotiation at list, it gives them some room to negotiate down to target 2. If we want to setup most of those discounts as 1st year only discounts, then the price jump for customers isn't painfully large 3. Our discount escalation policy is setup so AEs can discount 10%, Sales Directors (20%), RVPs (30%), etc. Targeting a discount of 10% to 20% should keep most deals from reaching the more senior approval levels. Would love to hear some thoughts on the topic if anyone has any. Thanks in advance! Steve
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New comment 2d ago
Competitive intel
Are there any free websites that provide information on companies' pricing strategies and list prices?
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New comment 4d ago
How to aproach larger companies that will only work with you if you sell them the platform
Thanks for accepting me in your community. I have spent two months reading The Pricing Roadmap book and watching Ulrik´s videos to improve my company aproach on pricing. We have a lot to work and learn and is super exciting to carry on this project. I have, however a much pressing question. We provide a monitoring and control saas service for mining, water utilities and energy companies and we also install and mantain our monitoring instruments. We deal with much bigger than us, cupper mining companies and pulp companies, among others. They frequently pick their suppliers on biddings and lately some of the biddings require we sell the platform to them because they want complete control on their data. Related to this, some big energy intensive companys have told us, no, we cannot work with you because all our data must remain within the house for security resons. So, I was thinking.. A "job to be done" would be ...I want others to develop my platform but I want to run it withouth the data going out. If we develop, and deliver an entire platform for each of this requests. How are we suposse to charge? and more important.. should we do it? Could we answer in other way with out losing this opportunities? If you could guide me in this, I would really aprecciate it. Kind Regards and excuse grammar english mistakes.
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New comment 6d ago
The role of packaging when using a credit based price model
For those of you with experience using credit based price models, I'm curious what you're perspective is on how packaging fits into the broader monetization strategy. I ask because if you're using a credit based price model, you presumably have a lot of flexibility with monetizing the usage of various areas of your solution. In that world, limiting access to features through packaging doesn't seem like it really has a place. I'd much rather focus on giving my customers access to all the features they need and encouraging adoption/usage to drive up credit consumption. Am I thinking about this correctly? Thanks! Steve
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Pricing in stages
Hi everyone I am launching an online community for project managers later this year. I am in doubt of pricing this. I think the “right price” is around 200USD pr year. But much of the value comes from other members and premade content (templates, guides, courses) so I am not sure I can charge that in the beginning. So I will that by charging 50USD, then 100 USD and then finally 200USD. My question is, should I state that from the beginning, that at a fixed date in the future it will go from 50-100 and another future date it will go from 100-200, or should I simply start with 50, and then later on raise the price? I am unsure if it would scare of people in the beginning? I will grandfather the 50USD even when it’s 200USD. I look forward to hear your advise.
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New comment 9d ago
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SaaS Pricing
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